Guan Eng says 3 more years needed to mend fiscal state

It would take at least three more years before Malaysia's fiscal health can be restored following years of endemic corruption, RM1 trillion worth of accumulative debt, and failed policies, Finance Minister Lim Guan Eng has said.

In a new year's message in his capacity as DAP secretary-general, Lim said that this was despite stating that the Pakatan Harapan had "notched up some clear successes" under the premiership of Dr Mahathir Mohamad.

These successes include finding extra savings of RM1.6 billion, the multiple prosecutions in relation to the 1MDB scandal and recovery process of stolen monies, replacing of GST with SST as well as plans to return RM19.4 billion in allegedly unpaid GST returns in 2019.

"Whilst endemic corruption and abuse of power were amongst the causes for the stunning victory of the opposition Harapan coalition on May 9, 2018, the real reason is still the economic hardships suffered by the people caused by failed policies, crony capitalism and of course the infamous 1MDB financial scandals.

"[...]Malaysia will require three years to restore our fiscal health and take our place as the most promising emerging economy to achieve high-income status," Lim said.

The new regime has been under pressure to restore the economy, especially after having campaigned on the platform of public dissatisfaction over rising costs of living and fiscal mismanagement.

It has also been accused of reneging or delaying various promises made in its election manifesto related to, among others, creating a more competitive economy and looking after the needs of the marginalised.

The Bagan lawmaker today noted, however, that Malaysia's economy was on the mend, stating that Bloomberg has placed the country as top amongst 20 emerging economies in the world, while other credit ratings agencies have maintained its ratings.

"This vote of confidence is evidenced by the resurgent growth in exports in October 2018 to a historic high in a single month of RM96.4 billion and a record trade surplus of RM16.3 billion.

"Approved Foreign Direct Investments (FDI) in the manufacturing sector increased from May to September 2018 by RM 27.7 billion or 379 percent, from RM7.3 billion in 2017 to RM35 billion in 2018," he said.

He further claimed that the new government, which came into power after defeating Barisan National in the May 9 general election, had been committed to the welfare of the low-income B40 community as well as civil servants, rubber tappers and smallholders, Felda settlers and parents.

"Petrol prices and highway toll hikes were frozen and not allowed to increase [...] the government managed to find extra savings of RM1.6 billion at the end of the year, which has been disbursed and shared with civil servants, rubber tappers and small-holders, Felda settlers and parents earning less than RM3,000.

"More importantly the B40 group will for the first time in history, enjoy free health insurance protection in the form of a one-off payout of RM8,000 spread over a yet to be determined time frame, and yearly 14-day hospitalisation income of RM50 per day or RM700 annually," his statement read. - Mkini